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By Emily Gallagher and Chris Plantier

September 21, 2012

Over the summer, prime money market funds marginally increased their holdings of eurozone issuers: from 12.2 percent of assets in June (chart) to 14.0 percent of assets in August. This increase was driven primarily by a rise in holdings of French assets (up to 5.1 percent from 4.3 percent in June) and in holdings of German assets (up to 5.1 percent from 4.1 percent in June).

Since November 2011, this share of eurozone holdings has hovered in the 12 to 16 percent range—roughly half of June 2011 levels—and maturity of these holdings remains very short-term. For example, 84 percent of prime money market funds’ French holdings matured in thirty days or less at end August 2012, compared to 37 percent in June 2011.